This presentation has been prepared by John Blangiardo and Apogee Financial Planning Limited ABN 28056426932 a member of the National Group of Companies This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstance ID: 612317
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Slide1
2016 Budget summarySlide2
This presentation has been prepared by
John Blangiardo and Apogee Financial Planning Limited ABN 28056426932, a member of the National Group of Companies. This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. Information in this presentation is accurate as at 3 May 2016. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.Opinions constitute our judgement at the time of issue and are subject to change. We do not give give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.Case studies in this presentation are for illustration purposes only. The investment returns shown in any case studies in this presentation are hypothetical examples only and do not reflect the historical or future returns of any specific financial products. Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns. Any tax information provided in this presentation is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or a complete assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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Important information and disclaimerSlide3
2016 Federal budget analysis
OVERVIEWSuperannuation - ‘enhancing flexibility and choice’ - ‘better targeting of concessions’ - ‘improving integrity’Personal and company taxSocial security benefits – no significant changesIMPORTANT: Legislation must pass through parliament before any of these measures become law. With a potential election pending there may be increased uncertainty regarding this budget.Slide4
2016 Federal budget analysis
YOUR RETIREMENTSUPERANNUATION – BETTER TARGETING OF CONCESSIONS Annual cap on concessional contributions will reduce to $25,000 for all taxpayers ‘Catch-up’ concessional contributions Additional tax on concessional contributions
Age
Annual cap amount
In 2015/16 and 2016/17
From 2017/18
48 or under on 30 June 2015
$30,000
$25,000
49 or over on 30 June 2015$35,000$25,000
Income
Tax on concessional contributions
In 2015/16 and 2016/17
From 2017/18
<$250,000
15%
15%
$250,000 to $300,000
15%
30%
$300,000 +
30%
30%Slide5
2016 Federal budget analysis
YOUR RETIREMENTSUPERANNUATION – BETTER TARGETING OF CONCESSIONS Changes to non-concessional contributions - from Budget nightLifetime cap of $500,000Replaces existing annual capsAll non concessional contributions made on or after 1 July 2007 Superannuation pension limits – from 1 July 2017 - a balance cap of $1.6m on the total amount of accumulation super that can be transferred into tax-free retirement phaseSlide6
2016 Federal budget analysis
YOUR RETIREMENTSUPERANNUATION – ENHANCING FLEXIBILITY AND CHOICEFrom 1 July 2017 Harmonising contributions between aged 65 and 74 - removal of work test - open up the ability for spouses over 70 to receive contributions Restrictions on personal superannuation contribution deductions eased - all individuals up to age 75 will be allowed to claim an income tax deduction for personal superannuation contributionsSlide7
2016 Federal budget analysis
YOUR RETIREMENTSUPERANNUATION – IMPROVING INTEGRITYFrom 1 July 2017 Transition to retirement pensions - tax exemption on earnings of assets supporting Transition to retirement income streams will be removed - same taxation as accumulation superannuation to apply (ie 15%) Anti-detriment death benefit provision removedSlide8
2016 Federal budget analysis
YOUR TAXPERSONAL TAX RATE CHANGES Targeted personal income tax reliefCurrent tax thresholds2015/16Tax rate
New tax thresholds
2016/17
Tax rate
$0 - $18,200
0%
$0 - $18,200
0%
$18,201 - $37,00019%$18,201 - $37,00019%
$37,001 - $80,000
32.5%
$37,001 -$87,000
32.5%
$80,001
- $180,000
37%
$87,001
- $180,000
37%
$180,000 +
45%
$180,000 +
45%Slide9
2016 Federal budget analysis
YOUR TAXOTHER PERSONAL TAX RATE CHANGES Spouse superannuation tax offset Temporary Budget Repair LevyDate of effectMeasures
Detail
1 July 2017
Spouse superannuation
tax offset
Spouse income threshold will increase from $10,800 to $37,000
Maximum tax offset will remain at $540
1 July 2017
Temporary Budget Repair LevyThis levy, which is 2% of taxable income in excess of $180,000 will expire on 30 June 2017, as legislated.Slide10
2016 Federal budget analysis
YOUR BUSINESSCOMPANY TAX RATE Staggered cuts to the company tax rateTax year
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
Turn over$10m$25m
$50m
$100m
$250m
$500m
$1b
Maximum business turnover to be eligible for 27.5% company rate
Tax year
2024/25
2025/26
2026/27
All companies
27%
26%
25%
Further company tax rate changesSlide11
2016 Federal budget analysis
MEASURES NOT ANNOUNCED OR AFFECTED Negative gearing Child care rebate Age PensionSlide12
THANK YOU